Binance has recovered or frozen over $73million in user funds so far this year, surpassing the $55million secured throughout the entire year of 2023.
This increase reflects the platform’s intensified security efforts to combat external hacks and scams.
Approximately 80 per cent of these recoveries are linked to hacks, exploits and thefts that occurred outside the Binance platform, with the remaining 20 per cent involving external scams.
Binance says its security team has worked with industry partners, users and public sector entities to trace and reclaim lost or stolen digital assets.
Jimmy Su, chief security officer at Binance, outlined the company’s focus on user protection, noting that these efforts are crucial in light of the increasing number of new investors who may be more susceptible to scams and hacks.
“Market growth and volatility, as observed in recent months, often bring an influx of new investors who may be more susceptible to scams and hacks, and elevated prices during these periods can result in larger monetary losses,” he said.
“By expanding our collaboration to include more third-party services, we have achieved greater coverage in tracking and recovering stolen funds. Our efforts and proven track record are a testament to our commitment to protecting our users and fostering a safer cryptocurrency environment.”
Crackdown impact
According to Chainalysis’ 2024 Crypto Crime Report, 2023 saw a significant drop in the value received by illicit cryptocurrency addresses, totalling $24.2billion, down from $39.6billion in 2022.
The share of all crypto transaction volume associated with illicit activity also fell to 0.34 per cent from 0.42 per cent in 2022.
According to Binance, the innate nature of blockchain, where all transactions are public and trackable, makes it easier to track and recover funds. This public record allows for easier identification and monitoring of potentially suspicious activity.
“Blockchain technology offers us a powerful tool in gathering essential evidence and taking action against scammers, paving the way for a more secure and safer investment environment,” Su also added. “While it’s important to stay cautious and always do thorough research, rest assured that the unique properties of blockchain technology are working to our advantage in this fight against scams.”
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